BILL ANALYSIS                                                                                                                                                                                                    







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        |Hearing Date:April 19, 2010        |Bill No:SB                         |
        |                                   |971                                |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                         Senator Gloria Negrete McLeod, Chair

                          Bill No:        SB 971Author:Pavley
                         As Amended:April 7, 2010 Fiscal: Yes

        
        SUBJECT:   Genetic disease services:  bleeding disorders: blood  
        clotting products.
        
        SUMMARY:  Establishes standards for the proper storage and delivery of  
        blood clotting factor, a prescribed biologic, and other related  
        equipment and supplies for home usage by people with hemophilia or  
        other bleeding disorders.

         NOTE  :  This bill was heard in the Senate Committee on Health on April  
        14, 2010 and passed 9-0.  

        Existing law:
        
        1) Provides for the practice of pharmacy and the licensing and  
           regulation of pharmacies, and pharmacists by the Board of Pharmacy  
           (Board) within the Department of Consumer Affairs (DCA).

        2) Specifies certain requirements regarding the proper storage,  
           handling, dispensing, and disposal of drugs, staff training  
           protocols, drug and supply inventory, labeling, and maintenance of  
           patient confidentiality.

        3) Authorizes pharmacists to administer drugs and biologics pursuant  
           to a prescriber's order.

        4) Prohibits pharmacies from leaving, picking up from, accepting, or  
           delivering prescriptions to any place not licensed as a retail  
           pharmacy, with certain exceptions, including a patient's residence  
           or workplace, or a licensed health facility, as specified.

        5) Creates the Holden-Moscone-Garamendi Genetically Handicapped  





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           Person's Program, which requires the Director of Health Services to  
           establish and administer a program for the medical care of persons  
           with genetically handicapping conditions, including hemophilia.

        This bill:

        1) Creates the Standards of Service for Providers of Blood Clotting  
           Products for Home Use Act (Act).

        2) Establishes findings and declarations about bleeding disorders and  
           treatment for bleeding disorders.

        3) Specifies that the purposes of the Act is to establish standards of  
           service for providers of blood clotting supplies and promoting  
           access to a full range of essential blood clotting products and  
           equipment for use at home by people with hemophilia and other  
           bleeding disorders.

        4) Applies definitions for the purpose of this Act, specifically:

           a)   "Assay" as the amount of a particular constituent of a mixture  
             or of the biological or pharmacological potency of a drug.

           b)   "Ancillary infusion equipment and supplies" as the equipment  
             and supplies required to infuse a blood clotting product into a  
             human vein, including, but not limited to, syringes, needles,  
             sterile gauze, field pads, gloves, alcohol swabs, numbing creams,  
             tourniquets, medical tape, sharps or equivalent biohazard waste  
             containers, and cold compression packs.

           c)   "Bleeding disorder" as a medical condition characterized by a  
             deficiency or absence of one or more essential blood clotting  
             proteins in the human blood, often called "factors," including  
             all forms of hemophilia and other bleeding disorders that result  
             in uncontrollable bleeding or abnormal blood clotting without  
             treatment.

           d)   "Blood clotting product" as an intravenously administered  
             medicine manufactured from human plasma or recombinant  
             biotechnology techniques, approved for distribution by the  
             federal Food and Drug Administration (FDA), that is used for the  
             treatment and prevention of symptoms associated with bleeding  
             disorders.

           e)   "Consumer" as a person needing a blood clotting product for  
             home use.





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           f)   "Emergency" as a situation in which a prudent layperson could  
             reasonably believe that the consumer's condition requires  
             immediate medical attention.

           g)   "Hemophilia" as a human bleeding disorder caused by a  
             hereditary deficiency of the Factors I, II, V, VIII, IX, XI, XII,  
             or XIII blood clotting protein in human blood.

           h)   "Hemophilia treatment center" as a facility for the treatment  
             of bleeding disorders, including, but not limited to, hemophilia,  
             that receives funding from federal government sources.

           i)   "Hhome nursing services" as specialized nursing care provided  
             in the home setting to assist a patient in the reconstitution and  
             administration of blood clotting products

           j)   "Home use" as infusion or other use of a blood clotting  
             product in a place other than a state-recognized hemophilia  
             treatment center, including a home or physician's office.

           aa)  "Provider of blood clotting products for home use" as  
             including but not limited to any hospital pharmacies, health  
             system pharmacies, pharmacies affiliated with hemophilia  
             treatment centers, specialty home care pharmacies, and retail  
             pharmacies that provide blood clotting products and ancillary  
             infusion equipment for home use, and patient assistance for the  
             management of bleeding disorders. Allows these providers to offer  
             home nursing services for persons with bleeding disorders.

        1)Provides that each provider of blood clotting products for home use  
          shall meet all of the following requirements:

           a)   Have sufficient knowledge and understanding of bleeding  
             disorders and the medical and  psychological management thereof,  
             including, but not limited to, home therapy.

           b)   Have sufficient clinical experience serving people with  
             bleeding disorders and have sufficient non-clinical understanding  
             of bleeding disorders so he or she knows when patients have an  
             appropriate supply of clotting factor on hand and knows about  
             proper refrigeration of clotting factors.

           c)   Have knowledgeable pharmacy staff on call 24 hours a day in  
             the event of need to provide emergency clotting factors.






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           d)   Supply blood clotting products and home nursing services, as  
             prescribed by the consumer's treating physician, and not make any  
             substitutions of blood clotting products or assay amounts.

           e)   Ask the prescribing physician which specific blood clotting  
             product is intended whenever a prescription does not indicate the  
             specific product and then use the product named in the  
             physician's response.

           f)   Supply all brands of blood clotting products approved by the  
             FDA in multiple assay and vial sizes, including products  
             manufactured from human plasma and those manufactured with  
             recombinant biotechnology techniques, provided manufacturer  
             supply exists and payer authorization is approved.

           g)   Supply all necessary ancillary infusion equipment and supplies  
             with each prescription, as needed.

           h)   Maintain adequate stocks of blood clotting products and  
             ancillary infusion equipment and supplies.

           i)   Store and ship, or otherwise deliver, all blood clotting  
             products in conformity with all state and federally mandated  
             standards, including, but not limited to, the standards set forth  
             in the product's approved package insert.

           j)   When home nursing services are prescribed by the treating  
             physician, to offer these services either directly or through a  
             qualified third party with experience in infusing bleeding  
             disorders and coordinate pharmacy services with the third party  
             when one is used to provide home nursing services.

           aa)  Upon receiving approved authorization for a non-emergency  
             prescription, to ship the prescribed blood clotting products and  
             ancillary infusion equipment and supplies to the consumer within  
             two business days for established customers and three business  
             days for new customers.

           bb)  Upon receiving approved authorization to dispense a  
             prescription for an emergency situation, to deliver prescribed  
             blood products, ancillary infusion equipment and supplies,  
             medications, and home nursing services to the consumer within 12  
             hours after receipt of the prescription for patients living  
             within 100 miles of a major metropolitan airport, and within one  
             day for patients living more than 100 miles from a major  
             metropolitan airport.





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           cc)  Maintain 24-hour on call service 7 days a week for every day  
             of the year, adequately screen phone calls for emergencies, and  
             respond to all phone calls within one hour or less.

           dd)  Provide consumers who have ordered their products a designated  
             contact phone number for reporting problems with a delivery and  
             respond to these calls immediately.

           ee)  Provide patients notification of recalls and withdrawals of  
             blood clotting products and ancillary infusion equipment within  
             24 hours and requires providers to participate in the National  
             Patient Notification System for blood clotting product recalls.

           ff)  Provide language translation services, both over the phone and  
             in person, as needed by the consumer.

           gg)  Have a detailed plan for fulfilling their requirements in the  
             event of a natural or manmade disaster or other disruption of  
             normal business operations.

           hh)  Provide for proper collection, removal, and disposal of  
             hazardous waste pursuant to state and federal law, including, but  
             not limited to, sharps containers for the removal and disposal of  
             medical waste.

           ii)  Clearly inform a consumer of his or her copay, deductible, and  
             coinsurance payment responsibilities initially and when changed  
             by the consumer's insurance, health plan, or other third-party  
             payer.

           jj)  Provide consumers with a copy of all billing invoices.

           aaa) Provide appropriate and necessary recordkeeping and  
             documentation as required by state and federal law and retain  
             copies of the patient's prescriptions.

           bbb) Comply with the privacy and confidentiality requirements of  
             the Health Insurance Portability and Accountability Act of 1996  
             (HIPAA).

        2)Requires the Board to enforce and administer the provisions of the  
          Act.


        FISCAL EFFECT:  Unknown.  This bill is keyed "fiscal" by Legislative  





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        Counsel.

        
        COMMENTS:
        
        1. Purpose.  This bill is sponsored by the  Hemophilia Council of  
           California  (Sponsor).  According to the Author and Sponsor, there  
           are currently no standards of service in state law governing the  
           proper storage and delivery of blood clotting products and this  
           bill will protect the health of people with coagulation disorders  
           who use these products at home.  Sponsors cite, as a need for a  
           state standard, a recent situation in which a Northern California  
           pharmacy delivered clotting factor product to a patient and left it  
           on their doorstep where the product subsequently spoiled in the  
           heat.  The Author and Sponsor also note, that pharmacies and other  
           entities specializing in the delivery of blood clotting products  
           for home use form a growing segment in California and standards  
           will "benefit people with hemophilia and other bleeding disorders,  
           as well as maintain the current cost effective model for care for  
           future generations."  The Sponsor also states that California needs  
           to have equal standards for all companies distributing clotting  
           factor in order to protect people with bleeding disorders from  
           companies that may not properly store or distribute clotting  
           factor.

        2. Background.  According to information provided by the Sponsors,  
           hemophilia is a rare, hereditary bleeding disorder affecting close  
           to 17,000 people in the United States, about 4,000 of whom live in  
           California.  Von Willebrand disease, another bleeding disorder,  
           affects about 360,000 Californians.  People born with hemophilia  
           have little or no clotting factor, the protein needed for normal  
           blood clotting.  Until the 1970s, people with severe hemophilia  
           suffered from uncontrollable internal bleeding, orthopedic  
           deformities and a shortened lifespan.  Recent inventions and  
           production of highly purified blood clotting factors have helped  
           give additional quality of life to those living with bleeding  
           diseases.  Factor products on the market today are usually free  
           from previous risks like HIV and hepatitis as a result of  
           contaminated material.

           Bleeding diseases are not curable but are treatable, often through  
           intraveneous (IV) injection or infusion of prescription blood  
           clotting products several times per week.  A variety of blood  
           clotting products, produced by various pharmaceutical manufactures,  
           can be prescribed to  temporarily replace the missing clotting  
           factors in order to prevent or correct bleeding episodes.  To  





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           properly administer blood clotting factors, patients must often use  
           ancillary supplies and equipment, such as syringes, tourniquets,  
           gauze, and alcohol swabs.  Blood clotting products are generally  
           expensive and require special handling, including storage at  
           certain temperatures, and sensitivity to extreme exposure to light.  
            The Centers for Disease Control (CDC) recommends timely access to  
           hemophilia treatment and the products and services related to that  
           treatment.

           Treatment is available to people with hemophilia and others  
           suffering bleeding disorders at federally funded Hemophilia  
           Treatment Centers (HTCs) or by prescription at pharmacies licensed  
           in the state.  The CDC reports that patients treated at HTCs  
           significantly reduce their morbidity and mortality.  There are over  
           140 HTCs in the nation which provide both diagnostic and treatment  
           services to people with hemophilia and other bleeding disorders,  
           combining the efforts of physicians, nurses, social workers,  
           physical therapists, orthopedists and dentists to comprehensively  
           serve patients.

           In California, many blood clotting product providers are specialty  
           care pharmacies.  While these pharmacies may specialize in the  
           provision of treatments and supplies to individuals with specific  
           chronic diseases, they are not licensed according to different  
           standards than other pharmacies.  Specialty pharmacies often ship  
           or deliver blood clotting products to the homes of individuals with  
           hemophilia, and other bleeding disorders, and when necessary,  
           provide or arrange for nursing services to patients who may need  
           assistance with infusion of the blood clotting products.

           Various other states including California have attempted to  
           establish standards for blood clotting products, including  
           Massachusetts, Missouri, Pennsylvania and New Jersey.  New Jersey  
           enacted that state's "Standards of Care in Hemophilia Homecare Law"  
           that was enacted in 2000.  The primary issue was a requirement by  
           insurers that people with hemophilia worked with certain home care  
           companies with which they had contracts.  The  Hemophilia  
           Association of New Jersey  found that often times, not all home care  
           companies were familiar with hemophilia care, needs, and  
           complications.  New Jersey now requires all insurance carriers that  
           provide coverage for the home treatment of hemophilia to contract  
           with home care providers that comply with certain minimum standards  
           of care developed by  their Department of Health & Senior Services,  
           in consultation with the Hemophilia Association.

        3. Prior Similar Legislation.  SB 1594  (Steinberg) of 2008 was almost  





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           identical to this bill.  SB 1594 stemmed from conversations between  
           the Hemophilia Council of California and pharmacies that distribute  
           blood clotting products for home use.  The bill was held in the  
           Senate Appropriations Committee.

        4. Arguments in Support.  The  California Medical Association  and  
            Herndon Pharmacy  in Fresno state their support, noting that this  
           bill will ensure that all providers of blood clotting products are  
           subject to the same quality and service standards which will  
           benefit the consumer of these products.

            CSL Behring  , "a leader in the plasma protein therapeutics industry"  
           and  Plasma Protein Therapeutics Association  , "representing the  
           world's leading manufacturers of plasma-derived and recombinant  
           biologic therapies," write in support, noting that the standards  
           set forth in this measure will help ensure that people with  
           bleeding disorders can lead healthy and productive lives.

            Grifols  , another producer of biologic therapies, states that it is  
           important to preserve access to the full range of therapies, and it  
           is important that there are no regulatory barriers to obtaining  
           blood clotting factors.

        5. Arguments in Opposition.  

           The  California Pharmacists Association  has an "Oppose Unless  
           Amended" position on this bill because of a number of provisions  
           that are "problematic for the smaller pharmacies that dispense  
           blood factor and other medications" to those with bleeding  
           diseases.  "If these requirements were imposed on the smaller  
           pharmacies serving those with Hemophilia, most would be forced to  
           discontinue providing these products.

        6. Senate Committee on Health amendments.  The Senate Committee on  
           Health suggested amendments and also raised concerns that there are  
           ambiguities in the use of certain terms in this bill.  The Author  
           accepted amendments in the Committee hearing to:

                     Further define the term "provider of blood clotting  
                products for home" 
                     Clarify use of the the terms "sufficient knowledge and  
                understanding of bleeding disorders" and "sufficient clinical  
                expertise" as those terms relate to the requirements for  
                providers of products for bleeding disorders. 
              
                     Clarify that the Board does not have to enforce the  





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                requirement for physicians to specify the type of clotting  
                product to use because the Board does not have jurisdiction  
                over prescribing physicians.  


        SUPPORT AND OPPOSITION:
        
         Support:  

        Hemophilia Council of California (Sponsor) 
        California Medical Association
        CSL Behring
        Grifols
        Herndon Pharmacy
        Plasma Protein Therapeutics Association


         Opposition:  

        California Pharmacists Association


        Consultant:Sarah Mason